KRA nets over Sh200m in mega public auction
Buyers make their bids on the second day of the Kenya Revenue Authority Auction at the Port of Mombasa on June 24, 2021.
The Kenya Revenue Authority has surpassed its target during the two-day mega public auction that ended on Thursday.
The auction, which was held at the G-Section of Kilindini on June 23 and 24, collected Sh201, 398, 000 against the projected Sh200 million according to KRA Chief Manager Port Operations Abdi Malik.
A sum of Sh138, 378,000 was collected from containers and loose conventional cargo. The taxman also collected Sh27, 531, 000 from the sale of motor vehicles. Sh35, 489, 000 was netted from re-offers.
At least 39 units out of 314 cars were auctioned on Wednesday alongside other assorted items with the taxman collecting Sh79 million from the goods auctioned by close of business.
Containerised cargo
On Thursday, the auction continued despite a smaller number of bidders turning up. Many of them made bids for containerised cargo.
“By 1pm Thursday, we had collected additional Sh40m from containerised cargo. We are optimistic of raising between Sh150m to Sh200m by the close of the auction today,” Mr Malik said.
Within the 30days from the date of gazettement of the auction, most of the motor vehicles were “Entered” and cleared by the importers,” Mr Malik told Nation.Africa.
According to a gazette notice, Pursuant to the provisions of section 42 of the East African Community Customs Management Act, a notice is given that unless the goods imported are entered and removed from the custody of the Customs Warehouse Keeper at the Port within 30 days of the notice, they may be sold by public auction.
Mr Victor Rakiro, a resident of Mombasa who was among the bidders commended KRA for holding a transparent public auction.
“I am here to buy a tractor, I never managed to make my bid but I hope to have something before the end of the auction,” said Mr Rakiro.
Mr Alvin Kamau said he was able to acquire a container and a vehicle.
“I managed to get a Toyota Hiace at Sh2.2 million. I’m lucky since it would have cost me Sh2.8 million at the showrooms in Mombasa,” Mr Kamau said.
Last resort
KRA noted that the auction is meant to ensure that importers pay the demurrage and get their goods. Auctioneer Isaac Njoka said that the exercise is usually a last resort for the taxman.
The KRA will start online auctions come July as it integrates the Integrated Customs Management System (iCMS) in its systems.
This will phase out the physical auction at the Port as the taxman plans to automate the bidding processes which will be done virtually.
“The information on how many bids an item attracted and how much was made and who got it, shall be available even after the auction,” the statement from KRA said.
It added: “It would also enable a large number of bidders to participate in the auction process and eliminate the possibility of cartels frustrating sales.”
